Real World Assets (RWA) Tokenization Market Poised for 5,600% Growth, Standard Chartered Maintains $2 Trillion Target
Standard Chartered’s RWA Market Outlook and Growth Projections
Standard Chartered sees a vivid future. They expect tokenized assets to grow from $35.5 billion in 2024 to $2 trillion by 2028. Growth climbs over 5,600%. Geoff Kendrick, head of Digital Assets, points to rising liquidity from stablecoins. New DeFi banks build systems that speed up token use.
Asset Classes Shaping Tokenization Rise
The bank splits the $2 trillion goal among different assets:
• $750 billion comes from tokenized market funds and public stocks.
• $250 billion goes to tokenized mutual funds.
• $250 billion spreads over private shares, commodities, corporate debt, and property.
This split spreads risk. Each item ties an old asset to a new token system in close links.
rsETH Issue Shows RWA and DeFi Limits, but Also Growth
A recent event caused $292 million to vanish from rsETH. rsETH stands for a token that ties staked ETH to the EigenLayer system. A smart contract flaw lets some attackers shift tokens fast. The DeFi group then rallied and gathered over $300 million to fix problems. This move sets it apart from past issues like the Wormhole hit in 2022. Standard Chartered sees the fix as a sign of progress, though tests still check the changes.
The event shows that adding layers on staked ETH builds more risk. It is not a fault of design but a set feature when tokens link together.
Institutional Adoption and Regulatory View
Big players now use real asset tokens. BlackRock’s Ethereum-based BUIDL fund stands as a clear case, and banks like State Street try small token tests. The push ties old bank ways to new token tech.
Ethereum leads as the top network for these tokens. Other chains, like Solana, show room to grow. Rules also shape these links. In Europe, laws along with checks by groups like Germany’s BaFin guide the way. Some experts see gaps in rules as a main risk. Analysts like Geoff Kendrick and Jamie Coutts (Real Vision) expect more modest views; Coutts sees a market near $1.3 trillion by 2030. ## Summary
• Standard Chartered expects tokens to grow from $35.5 billion in 2024 to $2 trillion by 2028—a rise of 5,600%.
• Main items include market funds, stocks, mutual funds, private shares, property, commodities, and corporate bonds.
• The $292 million loss on rsETH shows that DeFi has risks but that groups can fix issues fast.
• Banks and funds grow their token work mainly on Ethereum.
• New rules and checks shape the speed of change, while gaps in rules add risk.
The token change brings old banks close to new tech. Rules, banks, and token links join to form one fast system.
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📝 About This Article
This article was generated by Hivebox AI in collaboration with nGRND.
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